Traditional IRA contributions can be tax deductible or partially tax deductible based on MAGI. In 2014, an individual with a MAGI of up to $70,000 is eligible for at least partial deductibility. There are no income limits on who can contribute to a traditional IRA.
When the water heater breaks / leaks whatever the pressure tank is going to loose pressure telling the pump to come on and the pump will run continually as it can not build pressure to shut it off.
Water heaters can leak as a result of a failing tank - but also due to poorly fitted or soldered cold water supply pipe / hot water output pipe or a poor seal between tank opening and heating element. If allowed to continue to leak, it will cause internal damage to the controls should water enter them.